ANNUAL REPORT 2021-22

6 ANNUAL REPORT 2021-22 ANNUAL REPORT 2021-22 7 Our business Territory Generation is a Northern Territory Government Owned Corporation (GOC) which began operations on 1 July 2014 after the restructuring of the electricity industry in the Northern Territory. In the last financial year, Territory Generation produced 1,536 GWh of electricity using gas, diesel and solar technologies. We are the largest mass market and commercial electricity producer in the Northern Territory, owning ~603 MW of installed capacity and contracting an additional 5.1 MW from independent power producers, including 4 MW solar from Uterne in Alice Springs and 1.1 MW reclaimed gas produced by LMS Energy from the Shoal Bay landfill site. WHOLESALE ELECTRICITY SUPPLY Electricity Capacity to supply peak load ESSENTIAL SYSTEM SERVICES 1 001 Generator testing/ commissioning services Network support services BA M Frequency control services, including inertia System strength services 介 Capacity security services Electricity system services GOVERNANCE AND OPERATING STRUCTURE Territory Generation is governed by the Government Owned Corporations Act 2001 and the Power Generation Corporation Act 2014. Territory Generation was incorporated to provide sustainable financial returns to the Northern Territory Government. At the start of the 2021-22 financial year, Territory Generation's Shareholding Minister was the Treasurer, the Hon Michael Gunner, and the Portfolio Minister was the Minister for Essential Services, the Hon Eva Lawler. In May 2022, following a change of cabinet, Minister Lawler became the Treasurer and the Hon Selena Uibo our Portfolio Minister. Dennis Bree is the non-executive Chair of the Territory Generation Board of Directors. Richard Galton and Adjunct Professor Christine Charles are non- executive board members. The three directors are members of the Audit and Risk Committee and the People, Safety and Environment Committee. David Braines-Mead is an independent member of the Audit and Risk Committee, bringing expert financial knowledge. The Northern Territory Auditor-General audits Territory Generation's financial statements. RISK AND SAFETY MANAGEMENT Territory Generation continues to strive towards a zero-harm workplace with an inclusive behavioural safety culture where safety is always our highest priority and at the core of everything we do. Territory Generation manages risks through its Risk Management Framework, Risk Management Policy, Risk Register, Risk Matrix, and Risk Assessment Guide, supported by regular risk reviews, reporting, and management. We continuously enhance our risk management system by focusing on risk mitigation and using the Risk Matrix to assess risk levels based on 'Likelihood' and 'Consequence'. We are exposed to a wide range of risks, including process safety, health and occupational safety, cyber risks, competition, disruptive technology, information technology, security, natural disasters, pandemics, operational risks and compliance risks. Our corporate culture and mindset focus is on risk mitigation through risk-driven projects. Risk forms the basis of justifying any project at Territory Generation. Project managers must seek approval for projects via our Project Management Office. As part of this process, they must identify the risks their project will mitigate and assess the efficacy of this mitigation. The Hon Selena Uibo with Acting Owen Springs Station Manager, Hal Ruger. AUDITS, COMPLIANCE AND LEGAL OBLIGATIONS Territory Generation is always striving to improve the way we operate. We maintain a general compliance and audit program encompassing internal and external audits and action recommendations to improve our processes and procedures and reduce risk. We always meet our regulatory obligations on time, including delivering regulatory reports. Our business is subject to legal requirements, including Commonwealth and Northern Territory legislation, Regulations, Rules, Licensing, Standards and Codes, and we comply with part 9 of the Information Act 2002. We have also completed all recommendations and actions assigned to us by the Utilities Commission report on the 2019 Alice Springs system black. Territory Generation is monitoring the ongoing amendments being enacted to the Security of Critical Infrastructure Legislation to ensure compliance with our regulatory obligations. We also revised and updated our Cyber Incident Response Plan to align with mandatory cyber incident reporting obligations. In addition, we are updating our Risk Management Program to set out the risks and mitigation strategies for our critical infrastructure assets. OWEN SPRINGS POWER STATION DSPS Viter VISITOR TGen TO CONNECT CONNI Voltage control services Black start services

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